Page:United States Statutes at Large Volume 48 Part 1.djvu/213

 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933 . 187 able e ffect of the grant ing of such permit upon t he aff airs o f such condi tion s. bank, but no such permit shall be granted except upon the following con di tio ns " (a) Every such holding company affiliate shall, in making the Agreement required . application for such permit, agree (1) to receive, on dates identical with those fixed for the examination of banks with which it is affiliated, examiners duly authorized to examine such banks, who shall make such examinations of such holding company affiliate as shall be necessary to disclose fully the relations between such banks and such holding company affiliate and the effect of such relations upon the affairs of such banks, such examinations to be at the expense of the holding company affiliate so examined ; (2) that the reports of such examiners shall contain such information as shall b e necessa ry to disclo se ful ly the relat ions be tween such a ffilia te and such banks and the effect of such relations upon the affairs of such banks ; (3) that such examiners may examine each bank owned or controlled by the holding company affiliate, both individually and in conj uncti on wi th ot her banks owne d or cont rolle d by such hold ing company affiliate ; and (4) that publication of individual or con- soli dated stat ement s of cond ition of such banks may be r equir ed ; " (b) After five years after the enactment of the Banking Act tai n dW to be mam- of 1933, every such holding company affiliate (1) shall possess, and Post, P .195 . shall continue to possess during the life of such permit, free and clear of any lien, pledge, or hypothecation of any nature, readily marketable assets other than bank stock in an amount not less than 12 per centum of the aggregate par value of all bank stocks con- troll ed by such hol ding compa ny a ffili ate, which amo unt s hall be increased by not less than 2 per centum per annum of such aggregate par value until such assets shall amount to 25 per centum of the aggregate par value of such bank stocks ; and (2) shall reinvest in readily marketable assets other than bank stock all net earnings over and above 6 per centum per annum on the book value of its own share s out stand ing until such ass ets s hall amou nt to such 25 per centum of the aggregate par value of all bank stocks controlled byit; `' (c) Notwithstanding the foregoing provisions of this section, harehol ders' liabil- ity after five years after the enactment of the Banking Act of 1933, (1) ost, P. 195 any such holding company affiliate the shareholders or members of which shall be individually and severally liable in proportion to the number of shares of such holding company affiliate held by them respectiv ely, in a ddition t o amounts invested therein, for all statutory liabili ty imp osed o n such holdi ng com pany af filiat e by r eason of its control of shares of stock of banks, shall be required only to establish and maintain out of net earnings over and above 6 per centum per annum on the book value of its own shares outstanding a reserve of readily marketable assets in an amount of not less than 12 per centum of the aggregate par value of bank stocks controlled by it, and (2) the assets required by this section to be possessed by such holding company affiliate may be used by it for replacement of capital in banks affiliated with it and for losses incurred in such banks, but any deficiency in such assets resulting from such use shall be made up within such period as the Fed eral Reserve Board may by regu lation presc ribe ; " (d) Every officer, director, agent, and employee of every such a Liability erc. officers, holding compa ny aff iliate shall be su bject t o the same p enalti es for false e ntries in an y book , repo rt, or statem ent of such holdin g com- pany affiliate as are applicable to officers, directors, agents, and ua :c D i~'' 10D ' employees of member banks under section 5209 of the Revised Statutes, as amended (U.S.C., title 12, sec. 592) ; and